Which of the following does not affect marginal costs?
A)An increase in property taxes.
B)A decrease in Social Security taxes.
C)An increase in payroll taxes.
D)An increase in state unemployment taxes.

Question

Quizplus · Accepted Answer

An increase in property taxes does not directly affect marginal costs because marginal costs are concerned with the costs of producing an additional unit of a good or service, which typically involves variable costs such as labor and materials, not fixed costs like property taxes.

Which of the Following Does Not Affect Marginal Costs